Mizzima
The Thai Foreign Trade Department is concerned over the further decline in border trade between Thailand and Myanmar, due to fighting in Myanmar, and how it could affect transport and logistics.
Total border trade between Thailand and Myanmar in March 2024 was 19.7 billion baht, down 10.3 per cent for the same period in 2023, according to the Thai Foreign Trade Department.
Of that trade, 11.2 billion baht was exports from Thailand to Myanmar, a drop of 14.3 per cent from the March last year. Imports from Myanmar to Thailand were worth 8.52 billion baht, down 4.45 per cent on the previous year.
The Thai Commerce Ministry is targeting growth of 1 per cent in its cross-border trade this year.
The Thai Foreign Trade Department wants border trade to increase in 2024 after it contracted by 2.6 per cent to 1.74 trillion baht in 2023, according to Ronnarong Phoolpipat, the Foreign Trade Department Director-General.
He attributed the slowdown in cross-border trade to “challenges such as high inflation, a weak exchange rate in Laos and the conflict in Myanmar, as well as more protectionist measures by neighbouring countries.”
The private sector in Thailand has proposed that the Thai Government speed up negotiations with the authorities in Myanmar to facilitate trade. It said this should include the issuing of a single licence that will enable businesses to use any border crossing, meaning they can use other border crossings if the crossing they wanted to use is closed due to fighting on the Myanmar side. The private sector also called for a uniform tax collection system at all border crossings.
Trade between Mae Sot in Thailand and Myawaddy in Myanmar goes over the Thai-Myanmar Friendship Bridge No. 2. The bridge was closed on 19 April due to fighting but it reopened on the morning of 30 April.
Unfortunately, the fighting disrupted communication lines to the bridge cutting internet access and connections to banks, meaning that all import and export documentation has to be filled out and processed manually. The fighting also damaged and destroyed trade office buildings and office equipment at the bridge.
After the bridge shut the Myanmar junta announced on 11 April that it would allow goods to go by container ships from Yangon to Ranong in Thailand, which is opposite Kawthaung, Myanmar’s southernmost city.
But, it was not a satisfactory alternative as many importers and exporters said that it is much more challenging and expensive to send goods by sea or air rather than using the land border crossings.
